NISSAN TOKYO SALES HOLDINGS CO.,LTD. Q4 FY2025 earnings call

• Overall Financial Performance • Consolidated net sales totaled 141.6 billion yen, a 4.9% year-over-year decrease, driven by a lull in new model launches in 2024 and a pullback effect from concentrated new vehicle deliveries in the prior year's first half. • Operating profit was 7.4 billion yen, a 14.9% year-over-year decrease, while profit result met initial full-year forecasts, representing the second-highest level of operating profit since the company's formation in 2011, and well above the 5-year average of 5.4 billion yen. • Net income attributable to the parent company was 4.3 billion yen, a 41.2% year-over-year decrease, due to the non-recurring impact of a subsidiary sale gain in the prior fiscal year. • The company maintained a sound financial base: total assets increased 2.8 billion yen, liabilities increased 3.6 billion yen, net assets decreased 0.8 billion yen due to enhanced shareholder returns including share buybacks, and the equity ratio remained healthy at 58.3%, down 2.7 percentage points from the prior period. • Shareholder returns: 7 million shares were repurchased, total payout ratio reached 103.8% including dividends, and the annual dividend per share was 24 yen, marking the 5th consecutive year of progressive dividend increases. The company prioritizes balancing shareholder returns with growth investment to raise long-term corporate value.

• Strategic Operational Updates • Store network renewal accelerated: 7 stores were newly opened, relocated, or rebuilt as part of the mid-term plan's investment strategy. Renewals improve customer convenience, boost foot traffic, add EV-compatible infrastructure and disaster response functions, expected to expand revenue opportunities. • Personal lease expansion: Personal new vehicle lease sales exceeded 5,200 units for the second consecutive year, hitting 170% of pre-expansion levels. Over 70% of customers on 5-year P.O.P lease contracts replace their vehicle with a new one after 3 years, creating expected future demand of ~3,600 replacement units annually from 2026-2027, a 1,500+ unit annual increase from prior levels. The strategy shortens replacement cycles, builds repeat customers, and expands stable future revenue. • Community contribution initiatives: The company entered disaster prevention agreements with local governments utilizing EVs, supports community children's cafeterias through its Misato Farm, participates in the Tokyo metropolitan government's child safety watch project, and has made 11 consecutive years of donations to the Traffic Orphan Scholarship Foundation for traffic accident victim support. • Mid-term management plan (FY23-FY26) progress: The 3-pillar growth strategy (electrification leadership, safety/driver assistance technology, mobility business expansion) is progressing on track, with financial targets on track to be met by the 2026 final fiscal year. • Electrification leadership: Cumulative EV sales surpassed 16,000 units by the end of 2024, holding 33% share of Nissan brand EV sales in Tokyo, the top market share. Infrastructure expansion includes on-site solar power with recycled EV battery energy storage at the newly opened Hachioji store, upgraded EV-specific maintenance lifts, updated public rapid chargers, and deployment of Power Mover units that use EV batteries as emergency power sources, turning stores into disaster-resilient community infrastructure. • Safety and driver assistance: 97% of vehicles sold feature ProPILOT or other advanced driver assistance systems as standard or optional, matching high customer demand for safety. The accident rate for the company's auto insurance policies has fallen over 10% compared to two years ago, continuing a downward trend. The company is investing in IT-enabled inspection systems and mechanic recruitment/training to improve maintenance quality and productivity. • Mobility business expansion: Total personal lease vehicles on hand reached 16,000 units by the end of 2024, driving higher repeat new vehicle sales and customer retention. Rental car business is also growing steadily, as the company expands beyond core new/used vehicle sales and maintenance to meet diverse customer mobility needs. • Investment strategy: The planned 30 billion yen total investment for the mid-term period has been accelerated, with 22.3 billion yen already committed, expected to deliver results in the second half of the plan. The company will not limit investment to the 30 billion yen cap, and will continue to pursue aggressive investment for growth. • Human capital: The company identifies human capital as its most important asset as a retail business, and is implementing comprehensive initiatives to build an environment where employees can work with security and purpose, supporting diverse talent to thrive.

1. New Vehicle Sales: Revenue contribution of 53% of total revenue, saw a 6.4 billion yen year-over-year revenue decrease, and contributed 27% of total operating profit. Operating profit decreased 1.6 billion yen year-over-year, with the decline partially offset by a high share of electric vehicle (EV) sales and consultative sales practices. Total 2024 new vehicle sales volume reached approximately 24,000 units, with over 90% being electric vehicles. 2. Used Vehicle Sales: Revenue increased 1.9 billion yen year-over-year, and contributed 15% of total operating profit. Operating profit increased 0.6 billion yen year-over-year, reaching a record all-time high. The shift to focus on retail sales pushed the retail share up to 40%, raising average selling prices and improving profitability. Used vehicle personal lease contracts doubled year-over-year. 3. Maintenance Service: Revenue increased 1.1 billion yen year-over-year, and contributed 35% of total operating profit (the largest share). Operating profit increased 0.4 billion yen year-over-year, driven by stable consistent customer arrivals. The subsidiary Shakenkan, which operates maintenance inspection services, achieved record profits for the 3rd consecutive period, contributing to overall earnings growth. 4. Information Systems: Revenue decreased 3.9 billion yen year-over-year due to the impact of the sale of one consolidated subsidiary in the prior fiscal year. 5. Sales Commissions: Contributed 23% of total operating profit, completing a balanced, stable portfolio of multiple revenue sources.

• Overall market outlook: Overall domestic new vehicle demand is expected to exceed prior year levels, driven by resolved vehicle supply delays and new model launches. The used vehicle market is expected to see gradual improvement in supply and demand balance, with the high price levels of prior years cooling gradually. • Full-year FY2026 (ending March 2026) financial guidance: Net sales projected at 145.0 billion yen, a 2.4% year-over-year increase; operating profit projected at 7.0 billion yen, a 5.6% year-over-year decrease; ordinary profit projected at 6.5 billion yen, an 11.8% year-over-year decrease; net income attributable to the parent projected at 4.0 billion yen, a 7.2% year-over-year decrease. Sales growth will come from higher new vehicle volume from new model launches and the impact of store renewal, while profit declines reflect planned higher costs from aggressive growth investment and rising prices that have been incorporated into the plan. • Key growth initiatives for the coming fiscal year: Two new models including the new Leaf are planned for launch, expected to boost sales volume and average selling prices. Completed store rebuilds and renewals will improve customer experience, driving higher foot traffic and conversion. The company is rolling out AI-powered sales support tools to improve sales efficiency and order rates. Personal lease expansion will continue across both new and used vehicles to build future sales opportunities. • The annual dividend forecast for FY2026 is 24 yen per share, unchanged from the prior fiscal year, consistent with the company's policy of stable dividends balancing growth investment and shareholder returns. • The company will continue aggressive investment in human capital, digital transformation (DX), and store network renewal to drive sustainable profit growth and stable shareholder returns.

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